Larsen and Toubro Partners with DRDO for AIP Systems in Indian Navy Submarines
Mumbai-based engineering and infrastructure conglomerate, Larsen and Toubro, has recently entered into a partnership with the Defense Research and Development Organization (DRDO) to develop Air Independent Propulsion (AIP) system modules for the Indian Navy’s Kalvari class submarines.
AIP technology plays a crucial role in enabling non-nuclear submarines to operate without relying on atmospheric oxygen. The Kalvari Class submarines, which are diesel-electric attack submarines based on the Scorpene-class, will benefit from this collaboration.
One of the key advantages of this indigenous AIP system is its ability to generate hydrogen as needed, eliminating the requirement to carry hydrogen on board the submarine. This addresses a significant safety concern associated with traditional AIP systems.
Under the terms of the agreement, Larsen & Toubro will receive the Transfer of Technology (ToT) for the DRDO-developed AIP system. The company will handle the manufacturing, integration, and factory acceptance of the AIP system modules at its AM Naik Heavy Engineering Complex in Surat. Subsequently, these modules will be integrated into the AIP plug, which will be retrofitted into the submarines.
Larsen & Toubro expressed optimism that the successful execution of this project will lead to additional orders for AIP systems for the remaining Kalvari class submarines in the coming years. Furthermore, this collaboration could potentially open doors for exporting AIP systems to other countries operating Scorpene class submarines.
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Deven Choksey of KRChoksey commented on the matter, stating, “L&T is currently facing margin pressures due to the relatively tight margin orders they have recently won. Consequently, the expectation of higher volume and better profits in the future is relatively less favorable. This may result in L&T’s stock struggling within a certain range.”
At present, L&T shares are trading at Rs 2,414.3, representing a 0.8 percent increase. The stock is trading close to its 52-week high.
About Larsen and Toubro:
Larsen & Toubro Ltd, often referred to as L&T, is a renowned Indian multinational conglomerate. It operates in diverse sectors such as engineering, construction, manufacturing, technology, information technology, and financial services. The company’s headquarters are located in Mumbai. L&T is recognized as one of the leading global construction firms, ranking among the top five worldwide.
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